the biggest road block, regulation, despite washington's efforts to ease the burden on bank shares of texas, ceo david says it's still piling up. >> the regulatory burden today is tougher and stronger than it's ever been. the amount of money we're spending on the regulatory burden, people wouldn't even believe it. i used to say 500 million wouldn't be able to make it, it may be a billion dollars now. >> reporter: when costs get too high, banks get the urge to merge like hudson city and baltimore's mnt bank but according to tom, regulators are quick to question those deals, too. >> there are tremendous economic forces that will encourage consolidation and it will be a balance between the regulatory impact. i think in that particular case, the regulars don't want to see more big, big banks. >> reporter: with mergers difficult and costs on the rise, these companies banking on a better recovery. >>> still ahead tonight, who doesn't love a discount? tax holidays help the back to school shoppers save, but what it costs the state. >>> how the major indexes performed during the month of july first.